South Korea will lower the ceiling price for gasoline, diesel, and kerosene by 150 won per litre [1] starting June 27, 2026.
The move aims to reduce the financial burden on households and stabilize inflation during the summer months by reflecting a recent decline in international oil prices.
Vice Prime Minister and Finance Minister Gu Yoon‑cheol said the seventh petroleum price ceiling was determined by comprehensively considering the drop in global oil prices, public burdens, and fiscal conditions [1]. The adjustment follows a previous second-adjustment increase of 210 won per litre [1].
To further ensure price stability throughout the summer, the government has allocated a budget of 1 trillion won [1]. This funding is intended to keep consumer costs manageable as seasonal demand typically fluctuates.
Government officials expect the reduction to have a direct impact on consumer costs at the pump. A government spokesperson said that as a result of the decision, gas station prices are projected to drop from the early 2,000 won range to around 1,800 won per litre [2].
The Ministry of Trade, Industry and Energy coordinated the price ceiling shift to ensure that the benefits of falling global crude costs are passed down to the general public. The policy applies nationwide across all three fuel types, gasoline, diesel, and kerosene [1, 2].
“The government decided to lower the ceiling price for gasoline, diesel, and kerosene by 150 won per litre.”
By utilizing a price ceiling mechanism and a 1 trillion won stabilization fund, the South Korean government is attempting to decouple domestic pump prices from volatile global markets. This intervention suggests a priority on preventing a 'cost-of-living crisis' during the high-travel summer season, using fiscal tools to artificially dampen the inflationary impact of energy costs on the middle and lower class.
